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EU bank drops Belgrade incinerator, citing impact on recycling: EBRD and other banks press on

The EIB said that both its appraisal and an opinion from the European Commission on the project found that the incinerator would prevent Serbia from achieving its environmental targets on recycling and the circular economy as part of the EU accession process.

In contrast, the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC) and the Austrian Development Bank (OeEB) have recently signed loans for the project (3).

Ne Davimo Beograd and Bankwatch have recently filed an official complaint (4) to the EBRD about the Vinca project. The groups claim that the bank breached its own policies by failing to avoid negative environmental impacts from the project. This could have been achieved by supporting more sustainable practices like waste prevention, re-use, composting and recycling, which are at an extremely low level in Belgrade.

The complaint also highlights the fact that incinerators tend to crowd out waste prevention and recycling measures due to lengthy contracts that require city authorities to deliver consistent amounts of waste. In the groups’ view, the EBRD did not adequately respond to the concerns raised on this issue.

Pippa Gallop from CEE Bankwatch Network said, “The EBRD and IFC have persistently claimed that the incinerator would not affect recycling, without providing any evidence. Now the EIB and Commission say the opposite. The EBRD and IFC have a lot of explaining to do.”

Aleksa Petković from Ne Davimo Beograd said, “We welcome the EIB and the Commission’s recognition that Belgrade should not be prioritising incineration. We are already suffering from low recycling levels and dire air quality. The last thing we need is another source of pollution and another diversion from setting up a functional recycling system. The EBRD, IFC and OeEB need to withdraw from this project while they still can.”

Contacts:

Aleksa Petković
Ne Davimo Beograd
Email: nedavimobeograd@gmail.com
Tel: +381(0)11 420 85 96

Pippa Gallop
CEE Bankwatch Network
E-mail: pippa.gallop@bankwatch.org
Skype: pippa.gallop
Tel: +385 99 755 9787

Notes for editors:

  1. For more information about the project, see: https://bankwatch.org/project/belgrade-incinerator-public-private-partnership-ppp-belgrade-serbia

  2. For more information see: https://nedavimobeograd.rs/english/

  3. In addition to the planned incinerator, the project would include the construction of a new landfill, a landfill gas plant, a construction waste depot and a cosmetic rehabilitation of the existing Vinca waste landfill, but no recycling or composting of municipal waste. The EBRD is contributing a EUR 128.5 million syndicated loan, including a loan of EUR 72.25 million from its own account, a loan of EUR 35 million provided by Erste Group Bank AG, and EUR 21 million in concessional finance funded by TaiwanICDF. The International Finance Corporation (IFC) and Oesterreichische Entwicklungsbank (OeEB) are lending up to EUR 72.25 million and EUR 35 million, respectively. Source: https://www.ebrd.com/news/2019/belgrade-to-get-new-waste-management-facilities.htm

  4. See complaint, here: www.ebrd.com/documents/occo/belgrade-solid-waste-ppp-complaint.pdf?blobnocache=true

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Expansion of largest coal mine in Romania stopped, following Bankwatch court case

In 2016, Complexul Energetic Oltenia (CEO), the largest energy company in Romania, sought to expand the existing 1457-hectare lignite coal mine at Rosia by a further 280 hectares, 235 out of them covered by forests which would have to be cut off.

In its court case from 2017, Bankwatch argued that the environmental permit for the expansion was granted without the consultation of the most affected locals and that the cumulative environmental impact of the eight mines in the area had not been assessed. Moreover, the expanded mine would be located only 10 kilometers away from a Natura 2000 site (Coridorul Jiului), which made it likely that endangered species would be negatively impacted by the exploitation. Underground water on a radius of 30 kilometers around the mine would be polluted too, argued Bankwatch, in an area where people are already suffering from water contamination resulting from previous coal mining activities.

„It’s high time for Romania to develop a realistic strategy to ensure that polluting and expensive sources of energy, such as coal, are replaced with sustainable ones while at the same time making sure that employment is safeguarded in mining areas,” says Alexandru Mustata, Bankwatch campaigner in Romania.

„Romania is one of only seven EU countries left which have not set a coal phaseout date, but it won’t be able to postpone this decision much longer. In this context, giving the green light to new coal mines only means deceiving locals and miners. Bankwatch has been for years advocating that central and local governments start planning for the future beyond coal of Romania’s main mining areas, Hunedoara and Gorj. Jobs and opportunities need to be created as the energy transition is implemented,” added Mustata.

For more information, contact:

Alexandru Mustata, Bankwatch campaigner
alexandru.mustata@bankwatch.org
+4 0726 770 808

Notes for the editors:

  1. Watch a video produced by Bankwatch about the impact of mining activities on locals in Gorj (English subtitles): https://www.youtube.com/watch?v=AazV5m_TbtE
  2. Declaration of mayors from Hunedoara in Romania to collaborate towards just transition: http://www.just-transition.info/mayors-from-jiu-valley-one-of-romanias-main-mining-regions-agree-in-brussels-to-collaborate-for-a-just-transition
  3. More on the transition of Romania’s coal regions: http://www.just-transition.info/new-hope-for-just-transition-in-romanias-jiu-valley

Just Transition funding needs to support real transitions

In June, the governments of Czechia, Poland, Hungary and Estonia opposed the EU’s long-term climate neutrality goal because of financial concerns. The Just Transition Fund, initiated by the European Parliament and currently under development in the European Commission, aims to address this concern and help EU’s fossil-fuel dependent regions in their swift transition to clean energy.

While NGOs welcome the earmarking of EU funding to support the transition to a net-zero emissions economy, questions remain whether the new Just Transition Fund will be sourced with additional funding beyond what is available under Cohesion Policy funding. Using the revenues from additional aviation allowances under the Emissions Trading Scheme could be such an additional source of income.

Furthermore NGOs insist that transition funding should only be given to countries and to activities that accept and support a vision to fully decarbonise and ensure that the money is aimed to support the people that need it rather than wasting it on greedy companies.

Wendel Trio, director of Climate Action Network (CAN) Europe said:
“EU leaders rightly consider that climate change requires targeted finance for climate action, particularly in the Europe’s most fossil-fuel dependent regions. However the Just Transition Fund alone will not do the trick. The entire EU Budget has the potential to catalyse the transformation needed in all sectors of the economy. And the EU funds going to the regions are well designed to deliver such support, only if Member States set their priorities accordingly.”

Raphael Hanoteaux, Policy Officer at CEE Bankwatch Network said:
“Discussions about the size of a Just Transition Fund or the overall EU Budget should not overshadow a more important conversation about the quality of spending. EU leaders must ensure that local communities are involved in how any money is spent to ensure ownership of the long-term transition.”

ENDS

Major gas projects in Romania enabled by regulatory acrobatics – report

BUCHAREST — A new report released today by the environmental group Bankwatch Romania finds that much of the burgeoning gas development in Romania over the past two years has been enabled by a set of questionable changes in the regulatory framework.

The full report is available here: https://bankwatch.org/publications/state-capture-a-case-study-about-natural-gas-exploitation-and-transportation-in-romania

The report shows legislative measures have been time and time again adopted in a non-transparent manner, and without any public participation.

Romania has a clear set of rules for projects considered of national or strategic importance. But, as the report shows, gas projects such as the BRUA pipeline and plans for offshore gas drilling in the Black Sea have taken a different route – a legal bypass, in fact.

Specifically, they have benefited from legal derogations and legislative reinterpretations regarding the protection of the environment, of protected areas, or property rights. In this way, protected natural areas like Danube Delta or the Jiu Valley National Park are made eligible for the construction of gas pipeline and gas treatment stations.

Moreover, the legislation analysed in this report was the one in force until September 1st, 2019. Yet, the law concerning offshore oil operations is again subject to change.

These mega-projects have been enjoying both the government’s backing and financial support from the European Investment Bank and the European Bank for Reconstruction and Development.

Yet, while these institutions have policies to uphold, and even promote, certain standards of democracy, the rule of law, transparency and public participation, they appear to have been particularly tolerant to deviations from international law in the cases described in the report.

„The projects and legislative changes analysed in this case study prove that in Romania, climate and environmental policies and objectives mean too little. Facilitating the construction of pipelines and natural gas facilities in the middle of protected natural areas casts a serious doubt over the integrity of the institutions involved and the ability of Romanian authorities to develop the energy sector without further degrading the environment,” said Laura Nazare, campaign coordinator at Bankwatch and author of the report.

Contacts:

Laura Nazare
Campaign coordinator, Bankwatch Romania
laura.nazare@bankwatch.org
+40770209187

Decision on a fossil fuels ban at the EIB postponed once more

Counter Balance, Bankwatch and a large number of civil society groups and local authorities part of the Fossil Free EIB campaign have been urging the EIB to stop lending public money to fossil fuels. Back in July 2019, the EIB came up with a first proposal for its new Energy Lending Policy which featured an ambitious plan to stop support to fossil fuels by the end of 2020.

But since then, several EIB shareholders – the EU Member States – and the European Commission have succeeded in watering down this proposal by expanding loopholes to this fossil fuels ban – allowing for more gas projects to be financed. Driven in particular by Germany, they have succeeded, following September’s EIB Board meeting, in pushing the EIB to publish a weakened second draft. 

And now the decision on the policy is further postponed to the next EIB Board of Directors meeting on 14 November 2019.

“The EIB Directors need to adopt a Fossil Free energy policy at their next meeting in November. As of 1st January 2021, the EIB should stop handing out public money to fossil fuels projects. Otherwise, the whole idea of turning the EIB into a climate bank will inevitably fall apart.

The EIB President Werner Hoyer committed to align all the EIB operations with the Paris Agreement by the end of 2020. When announcing this plan to the European Parliament last week, he received significant support from most political groups. But if a weak energy policy is adopted, this objective will not be reached.

It is now time for the European Commission, Germany and those countries that opposed the EIB’s fossil fuel ban to stop acting as climate laggards and recognise the urgency of stemming the climate crisis. The European Commission should also clean up its act, as it cannot on the one hand publicly promote its European Green Deal as a game changer and on the other object to climate commitments at the EU’s financial arm. It’s now time to act., Business as usual won’t work for the climate or for citizens,” said Xavier Sol, Director of Counter Balance

“The European leaders are again confirming that climate protection is an empty phrase for them. They are not making necessary decisions that should have been made long time ago and are undermining the right proposals made by the EU’s bank, the EIB. We are disappointed by this delay but still hope that the initial proposal will be adopted in November” – said Anna Roggenbuck, Policy Officer, CEE Bankwatch Network

Can European Parliament make ICT fair?

The breakfast was organised to raise awareness of sustainability and human rights abuses in the supply chain of information communication technology (ICT) products, as well as facilitate the discussion on the role of MEPs in promoting EU policies on human rights, European development banks and public procurement.

MEP Abir Al-Sahlani said: “Our societies have benefited greatly from globalisation. But it is important to raise awareness of human rights risks associated with the production of some of the most popular products that many of us enjoy- like smartphones. People should never be in danger when doing their jobs.”

The breakfast began with a video testimonial addressed to MEPs from Pak Kin Wan, a worker in the Labour Education and Service Network in Hong Kong, and a speech by Anna Shahnazaryan who works in Armenia and had experienced first-hand the violations to human rights.  Following this, speakers from SETEM, Bankwatch and ICLEI gave talks on the priority EU areas of action: business and human rights, European development banks and public procurement.

Make ICT Fair participant organisations presented the MEPs with a list of case studies conducted by members of the consortium, as well as a briefing document outlining the key actions MEPs can take to ensure the implementation of fair and sustainable EU policies on the priority areas.

Participants could upload photos and footage using the hashtag #MakeICTFair and #fairelectronics on social media.

For more information contact the lead project researcher Linda Scott Jakobsson at linda@swedwatch.org.

Notes

Make ICT Fair is an EU-wide project that aims to improve the lives of workers and communities affected by the production of ICT devices such as smartphones and laptops. We target EU citizens, public procurers, development banks, decision-makers, and companies to improve their purchasing practices and to align policies. The partners: SETEM Catalunya, CATAPA, ICLEI, the University of Edinburgh, Le Monde Diplomatique, People & Planet, CEE Bankwatch, Swedwatch, Electronics Watch, Towards Sustainability Association, and Südwind.